U.S. Steel & Aluminum Tariffs
New U.S. tariffs on steel & aluminum start March 12, 2025—25% for most, 50% for Turkey, 200% for Russia. Exemptions & exclusions ending! Find key resources on tariffs, proclamations & EOs in blog and download the spreadsheet with all the affected USHTS codes.
The U.S. government has decided to increase tariffs on steel and aluminum imports to protect American industries and national security. Here’s what you need to know, in simple terms:
On February 18, 2025, the U.S. government published an Annex to the original Executive Order (EO) in the Federal Register, outlining significant updates to Section 232 tariffs on steel, aluminum, and their derivatives. The changes take effect on March 12, 2025, impacting a wide range of global exporters.
What does this mean for importers, exporters, and businesses relying on these materials? How will these changes affect global supply chains? In this blog, we break down the details, answer your pressing questions, and provide recommendations to navigate these new tariffs effectively.
Why Are These Tariffs Being Increased?
The U.S. believes that foreign countries, especially China, have been selling steel and aluminum at unfairly low prices, hurting American manufacturers. Previous tariffs had loopholes that allowed some countries to avoid them, reducing their effectiveness. The new changes aim to close these gaps and ensure stronger protection for U.S. industries.
What Are the Key Changes?
A 25% tariff now applies to all imported steel and aluminum.
Some countries, like Turkey, face a 50% tariff on steel.
Russia will face a 200% tariff on aluminum.
The U.S. is eliminating previous exemptions for countries like Canada, the EU, Mexico, and Japan.
The government will enforce stricter rules to prevent mislabeling of imported steel and aluminum.
The exclusion process for certain steel and aluminum products is ending.
How Will This Impact Businesses?
Higher Costs: Companies that rely on imported steel or aluminum may face higher prices.
More U.S. Production: The tariffs aim to encourage American companies to produce more steel and aluminum domestically.
Job Growth: Supporters argue that these measures will create more jobs in U.S. steel and aluminum industries
What are the details?
1. Effective Date
The increased tariffs take effect on March 12, 2025.
2. Countries Losing Exemptions
All countries will now be subject to the increased Section 232 tariffs.
Notably, the following countries will no longer receive exemptions:Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the U.K., Ukraine, and the EU.
The U.S. Harmonized Tariff Schedule (HTS) defines the EU as including: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia (Czech Republic), Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
3. Tariff Increases
Steel and aluminum imports from the above-listed countries will be subject to a 25% tariff.
Turkey: Steel and steel derivatives from Turkey will face an increased 50% tariff.
Russia: Aluminum and aluminum derivatives from Russia will be subject to a 200% tariff.
Additional steel & aluminum derivative products will be subject to a 25% tariff, pending confirmation from the U.S. Commerce Department on “adequate systems” for revenue processing.
4. Exemptions & End of Exclusions
U.S. Domestic Exemptions: Steel and aluminum derivatives processed from materials that were melted and poured in the U.S. will remain exempt, provided importers submit appropriate data to U.S. Customs and Border Protection (CBP).
End of Exclusion Process: The previous exclusion process for Section 232 tariffs will be discontinued. No new exclusions will be granted, and existing exclusions will expire once the approved volume is imported or by March 12, 2025.
5. Enforcement & Compliance Measures
The CBP will prioritize classification reviews of imported aluminum and steel products.
If misclassification results in a loss of revenue, CBP will impose maximum monetary penalties as allowed by law.
A new process will be established allowing producers or trade associations to request the inclusion of additional steel & aluminum derivative products under the tariff list.
Resources
Proclamation 10896-Adjusting Imports of Steel Into the United States, with Annex
Proclamation 10895 of February 10, 2025 Adjusting Imports of Aluminum Into the United States
Executive Order: Adjusting Imports of Steel into The United States
Executive Order: Adjusting Imports of Aluminum into The United States
US Presidential Factsheet on Section 232 Steel and Aluminum Increased Tariffs of 25% may be found.
What HTS codes are affected?
Download the Excel sheet with all the affected HTS codes:
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What Can This Mean for Importers & Exporters?
1. Increased Costs & Supply Chain Disruptions
Businesses importing steel and aluminum products from affected countries will experience higher costs, requiring price adjustments or alternative sourcing strategies.
2. Review Your Supply Chains
Companies reliant on steel and aluminum should immediately assess how these new tariffs will impact their current sourcing, procurement, and pricing models.
3. Explore U.S. Domestic or Alternative Suppliers
With U.S.-melted and poured steel and aluminum exempt from these tariffs, companies may need to explore domestic suppliers or seek alternative global partners in non-impacted regions.
4. Understand Compliance & Documentation Needs
Importers must maintain accurate documentation proving the country of origin and product classification to avoid penalties from CBP. Regular audits and compliance checks will be essential.
Recommendations: How to Prepare
✅ Assess Your Tariff Exposure
Identify which of your imports will be impacted by the increased tariffs.
Review HTS classifications for affected products to ensure compliance.
✅ Evaluate Alternative Sourcing Strategies
Consider shifting procurement to U.S. suppliers for tariff-exempt steel and aluminum.
Explore other non-tariffed international markets.
✅ Engage with Trade & Customs Experts
Consult with customs professionals to navigate tariff mitigation strategies.
Stay informed about potential policy changes that could impact trade.
✅ Monitor CBP Enforcement & Compliance Measures
Prepare for stricter customs classification reviews.
Ensure accurate reporting to avoid penalties.
What’s Next?
Companies will need to adjust their supply chains to deal with these new tariffs.
More investment in U.S. manufacturing is expected as businesses look for domestic sources.
Importers should check the latest tariff rules to avoid penalties for misclassifying goods.
Final Thoughts
While these tariffs aim to strengthen U.S. manufacturing, they could also increase costs for industries that depend on steel and aluminum imports. The full impact will depend on how businesses adapt and whether other countries retaliate with their own tariffs. The new U.S. tariffs on steel, aluminum, and derivatives will have far-reaching effects on global trade. Businesses must take proactive steps to assess their exposure, explore alternative sourcing, and enhance compliance efforts.
Disclaimer
⚠️ This article is for informational purposes only and does not constitute legal advice. Consult a trade compliance expert before making regulatory decisions. Book a free consultation with Customs Manager Ltd. for tailored advice.
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